Systems Design Project
Change is integral to the survival of any commercial enterprise in today's globalized, technologically advanced business environment. This requires stakeholders to have personal and organizational transition skills to attain the desired change for future success (Hughes, 2006). Strategizing drives organizational change giving it direction through activities (Thornhill, Lewis, Millmore and Saunders, 2000). Internal and external environmental considerations are both relevant; along with change management required to align with strategic change. Singular change is integral to organizational modification; a concept that bears adopting as a precursor to internalizing change across the organization.
The change agent is responsible for comprehending the concept of strategic change which encompasses an understanding of change models, approaches and tools for proper implementation. Furthermore they must possess an aptness for analytical assessment of contexts, critical thinking adeptness - both of which will be applied along the change continuum within the organization through use of interpersonal and influential capabilities (Balogun and Hailey, 2008). Finally, a change agent must also possess self- awareness while having the expertise to separate organizational from personal perspectives.
Change approaches and tools
The three states of the change process are current, transition and future; and the models are punctuated equilibrium and continuous (Balogun and Hailey, 2008). Accessing these may be done via the varied approaches of emergent, planned Theory Z, Theory O, and Theory E; tools of implementation may include PESTEL, change kaleidoscope, cultural web or Porter's five force analysis. The aforementioned breadth of choices underscores the realization that no one approach or tool is considered 'best'. Cincom must consider its own internal and external environment and context when making decisions.
The planned approach to change occurs by the deliberate development of a rational and intentional process that is implemented on a top-down basis and assumes a stable environment (Hayes, 2002). The aim is to realize effective improvement of the human aspects of an operation through group applications of the change program (Burnes, 2004). It assumes change as a series of linear events applied across the employee landscape. Conversely, the emergent approach is best suited for an unpredictable environment and springs from multiple interrelated variables; perhaps decision making and an external environment. In emergent approaches the process is open-ended and occurs in a bottom-up paradigm (Hayes, 2002).
Tools of change
The premier tools for organizational analysis of the external business environment include Porter's five forces and PESTEL; while those most suitable for internal organizational analysis are the Force field, Culture web and change kaleidoscope. SWOT is applicable to both. Let us consider each separately. Porter's five forces is a 'scope-down' tool that examines the industry in which a company exists; identifying their own competitiveness within the industry and associated threats such as supplier and buyer power, rivalry, substitutions and more. PESTEL is also a tool for analyzing macro-environmental factors such as technology, society, politics, legal and economic issues (Johnson, Scholes, and Whittington, 2009).
A change kaleidoscope is designed to review only three factors - organizational context, change contextual aspects and the design or implementation choices available for change (Balogan and Hailey, 2008). The culture web identifies obstacles currently facing an organization while offering advice for altering the organizational culture. A force field analysis identifies those forces that are either inciting or restraining change on the level of the individual. Here there are three levels of attitude alterations labeled unfreezing, learning and refreezing (Balogun and Hailey, 2008). Finally, SWOT is an analytical tool that examines the strengths and weaknesses within an organization and outside influences.
GlaxoWellcome will be the focus of this essay; having many of the same features as Cincom; a culture with an aged CEO who is likely out of touch with progressive technologies and who inserts himself in all aspects of day-to-day operations including such things as sales and pricing and customer service. It is apparent that change management is essential for Cincom to remain competitive.
Overview of GlaxoWellcome Case Study
GlaxoWellcome is a pharmaceutical company located in the United Kingdom. Originally formed by a merger in 1995; a second merger in 2000, and several other changes have propelled it to the second largest pharma company in the employees that would then be applied to the job (CMLC, 2009). It was successful in creating a sense of collaboration that reinforced a multiplicity of values germane to improved processes across the organization. Senior management also underwent training that was later delivered to the entire 700 employee business. RATIO, for all practical purposes, was deemed a success in creating awareness of culture change; but did not preclude the need for further professional development (Hailey and Balogun, 2002).
Second change stage at Glaxo - 1997
In 1997 Glaxo underwent a complete restructuring of the organization and overhaul of programs; reemerging as Wellcome Company. The hierarchy shrunk from 7 levels to 4; and shifted focus from the individual to disease management; and reduced R & D. expenses by creating collaborative relationships with universities. Team work was emphasized; networking became the new business paradigm; customer service was paramount. Also, a reward system was implemented; an expanse of coaching and consulting activities was the center of professional development experiences. Technology-based customer evaluations became commonplace and internal organizational restructuring was implemented to model the structure of the NHS (Hailey and Balogun, 2002).
Evaluating the Emergent and Planned Approach
The emergent approach occurs in unpredictable environments and is lacking in prior planning. Its benefits are short implementation periods and a fluidity of the working process. The planned approach requires programming and considers group performance (Chris, 2009). The circumstances of crisis in the emergent approach are more appropriate for facilitating transformation. However, there are limits to its effectiveness when factors are uncontrollable such as a loss of management. In this case the planned approach is more apropos for its top-down change model (Dellana and Hauser, 2000).
The four elements of the planned approach are field theory, group dynamics, action research and three-step models. The first two are tools for analyzing the formation, motivation and maintenance of the social group. Additionally, the three stop models are unfreezing, relearning and refreezing - all of which create long-term change. We recommend the use of the planned approach for organization structure change (Burnes, 2004).
Application of the emergent approach to this Glaxo Case study
We find that Glaxo utilized both planned and emergent approaches at different stages of organizational change. To address the changing business environment they adopted the emergent approach that emphasized change awareness and supported program updates. The planned approach supported long-term organization change. RATIO supported the analysis of employee behavior - unfreezing employee adaptability to new systems.
The prerequisite to successful organizational change is an analysis of its context for appropriate implementation. Here is where change kaleidoscope is effective for its range of implementation options and contextual features analysis. Choice of path, start point, style, target, interventions and roles are all applicable. Kaleidoscope educates organizations through self-awareness and is useful in solving change problems by assessing contextual enablers and constraints, determining change paths, and selecting additional change choices (Govindarajan, 1988; Kanter, 1999; Scheffler, 2000, SQA, 2009).
Be forewarned that a complete change design will require the use of other tools such as the cultural web - implemented in simultaneously with kaleidoscope. Too, Kaleidoscope allows for the establishment of a well-structured transition state but all processes must be synchronized; and the complexity of the task requires the change agent to possess exceptional analytical, judgment and implementation abilities. Kaleidoscope is best suited to scenarios of planned change with preconceived goals (Hailey and Balogun, 2002).
Application of change Kaleidoscope to Glaxo Case Study - first stage of change
The contextual enablers and constraints identifiable from the application of Kaleidoscope include time, scope, diversity, and capacity. Preservation and readiness are the main constraints; while power and capability are deemed neutral (Hailey and Balogun, 2002).
1. Time (+) - There is no sense of urgency; but the need for change is apparent.
2. Scope (+) - Realignment of employee behavior is necessary but not deemed exceptionally challenging.
3. Preservation (-) - Workforce talent must be preserved to ensure continued operational capabilities - a constraint to change.
4. Diversity (+) - Sales division has lack of diversity - but small challenge to change.
5. Capability (n) - This area is neutral in change management - breadth of capabilities
6. Capacity (+) - Marked positive due to Glaxo's affluence - able to invest in change.
7. Readiness (-) - Readiness is negative to change due to low change awareness of employees.
8. . Power (n) - Employee…
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